Quess Corp Shares Rise After Plunging Over 50%

Bengaluru-based Quess Corp shares very marginally gained some lost ground upon relisting on the exchanges after falling more than 50% Tuesday on both the bourses – the BSE and the NSE – post the company demerging itself into three entities, the other two now being Digitide Solutions and Bluspring Enterprises.

On BSE, the shares of Quess Corp settled at Rs 296 at the start of the day Tuesday down from Rs 604.45, indicating a sharp 51% decline from the previous close. The trend was the same on the NSE, where its stock price settled at Rs 298, down over 51%. At the time of writing the story, the shares of the company were trading at Rs 310.55, up 4.99% on the BSE, with total market capitalization of Rs 4,625.62 crore.

Quess Corp Shares Rise After Plunging Over 50%. But, Why Shares Slipped?

The Sharp Plunge – What Led To It?

Sigh of relief is that it did not happen on account of market volatility, any negative company news or panic selling by investors. It is merely because the structural change of the company wherein its market value adjusted after the demerger.

Digitide Solutions and Bluspring Enterprises will be listed later on BSE and NSE and their values has been subtracted from the share price of Quess Corp, that resulted in a sharp decline.

Upon relisting, the stock has been put in T group that implies no intraday buying or selling Is allowed on the stock and there would remain a circuit filter of 5 percent on either sides.

For at least 10 trading sessions, the stock will remain in the T group.

What’s In For Investors Of Quess Corp?

Quess Corp had earlier informed that April 15 would be the record date for the spin off and the investors who had shares in the company as of that date would qualify for receiving shares of the two new businesses.

Both the new entities – Digitide and Bluspring – will issue to eligible shareholders 1 share of Rs 10 face value for every 1 share of Rs 10 face value of Quess Corp.

“Digitide and Bluspring shall issue and allot 1 (One) fully paid-up equity share of Digitide and Bluspring having face value of Rs 10/- (Rupees Ten) each for every 1 (One) fully paid-up equity share of Rs 10/- (Rupees Ten) each of Quess to the shareholders of Company whose names are recorded in the register of members and/or records of the depository as on the Record Date (i.e., Tuesday, 15th April 2025), the company said in an announcement Monday.

The Two New Entities

The values of the resultant two companies could only be determined once they get listed on the exchanges, which is expected to take place within the next two months.

“This is a landmark moment for Quess and is a transformational decision to create three separate entities. It helps the management to focus, develop capital allocation plans relevant to each business, and create value for our shareholders. The decentralized structure at Quess has enabled a pathway for the three demerged entities to continue a culture of entrepreneurship, an employee-friendly workplace with customer centricity being at the core of our purpose. We believe that the heavy lifting to create these entities has been done and it is now time to unlock value through this demerger,” Quess Corp Chairman Ajit Isaac had said when the demerger was announced last year.

Disclaimer: The story highlights demerger, share price movement, and should not be considered as investment advice by the Moneydaily.in or the Author. Moneydaily.in and the author will not be held responsible for any losses caused as a result of decisions based on the above information. Moneydaily.in advises readers to do their own research or consult a SEBI registered investment advisor before making any investment decisions.